MoneyGram comes with excellent news for its shareholders

MoneyGram International has announced that all proposals submitted for a vote during the Special Meeting of MoneyGram International shareholders held earlier received shareholder approvals. The proposals were related to the previously announced Recapitalization Agreement entered into by MoneyGram International, Inc., affiliates and co-investors of Thomas H. Lee Partners, L.P. and affiliates of Goldman, Sachs & Co. and related amendments to the Company’s charter documents reflecting proposed changes agreed in the Recapitalization Agreement. Following the shareholder vote, the Company today also completed the recapitalization transaction contemplated by the Recapitalization Agreement. Pursuant to the transaction, affiliates and co-investors of Thomas H. Lee Partners, L.P. and Goldman, Sachs & Co. converted the Company’s Series B and Series B-1 preferred shares into common stock or Series D preferred stock (a common stock equivalent) and received additional shares of common stock or Series D preferred stock and a cash payment, all as described in the Recapitalization Agreement and the Company’s proxy statement. 

"We are extremely pleased with our shareholders’ strong support of the recapitalization,” said Pamela H. Patsley, MoneyGram chairman and chief executive officer. “The recapitalization transaction is a significant step in the turn-around of MoneyGram. The transaction simplifies our capital structure, aligns the interests of our shareholders and brings clarity in our efforts to create long-term shareholder value.” 

In addition to the closing of the recapitalization, the Company also today closed on its new senior secured credit facility. The new $540 million senior secured credit facility consists of a $150 million, five-year revolving credit facility and a $390 million, six and a half-year term loan. The new term loan bears interest at LIBOR plus 3.25 percent (with a LIBOR floor of 1.25 percent) and materially extends the company’s senior debt maturities to 2017.

Source: Money|Gram